Bitcoin recently gave a bearish signal, which ultimately failed to produce a meaningful pullback.
Due to the technical failure, historical data suggests that BTCUSD could reach a new all-time high and reach a target of $85,000 per coin in just a month. This is why.
Why Failed Bearish Technicals Cause Bullish Breakouts
In technical analysis, certain patterns are considered characteristically bearish or bullish. For example, the ascending triangle is a typical bullish pattern, but only breaks to the upside 63% of the time. For the remaining 37%, the pattern is bearish.
Due to the nature of how orders and stop losses stack on either side of a pattern’s trendlines, a failed bullish pattern can be extremely bearish and vice versa. Delving further, since the pattern was visibly bullish, it could have attracted more positioning on the long side, which is forced to settle lower.
Recently, Bitcoin price gave a bearish TD9 sell setup on the weekly TD Sequential. However, no major correction followed. When this happens, it often results in significant movement in the opposite direction of the signal.
More simply put, the TD9’s failed sales lineup could mean a huge upside. And how high the price could be and how quickly it could shock you.
Could BTC reach $85K in four weeks? | BTCUSD on TradingView.com
Market Timing Tool Indicates Bitcoin Rally to $85,000
The TD Sequential is a market timing indicator developed by Thomas Demark. A TD9 setup or TD13 countdown is a specific series of candles that signals trend exhaustion.
When this same signal failed in 2020, Bitcoin shot to new all-time highs above $20,000 and then some. It rose 143% in the four weeks after the signal and more than 300% overall when it was all said and done.
If this recently failed TD9 selloff were to follow suit of the same magnitude, Bitcoin price would reach $85,000 by the end of December. Another 300% above the current all-time high in BTCUSD would bring the top cryptocurrency’s total to over $200,000 per coin.
In terms of lower prices, the indicator also offers TDST support and resistance levels. These levels rise and fall with each completed TD setup. This latest setup caused the TDST floor price support to rise from $10,000 to $25,000, reducing the likelihood of BTCUSD ever trading below that price again.
In December 2020, after a failed sales lineup of the TD9, #Bitcoin added another 143% in 4 weekly candles, rising above the former ATH resistance
A movement of the same magnitude would entail this $BTC to another new ATH of $85,000 before the end of the year
Do you still doubt my statement: we will see ATHs in 2023? pic.twitter.com/GwCXEaY1II
— Tony “The Bull” (@tonythebullBTC) November 17, 2023